Can I advise on matters after my PII expires?

I’m a sole practitioner having difficulties renewing my professional indemnity insurance (PII). I’m thinking of closing my practice. Can I continue to advise on matters after my PII expires?

Yes. If you’re unable to renew your insurance, the Solicitors Regulation Authority (SRA) will give you a limited period of time to find cover or close down your practice in an orderly fashion.

Your current insurer is required to provide you with up to 90 days of further cover.

These 90 days are divided into two distinct parts:

• the extended indemnity period (EIP) – the first 30 days
• the cessation period (CP) – the subsequent 60 days

During the EIP, you can continue to practise as normal and try to obtain qualifying insurance.

If qualifying insurance is obtained, the new insurer must backdate the policy to the start of the EIP.

If not, you’ll enter the CP during which you:

• will be unable to accept new instructions, and
• can only perform work in connection with existing instructions while you make the necessary arrangements for the orderly closure of your practice

However, you’re still permitted to seek qualifying insurance while you’re in the CP.

If you’re successful in finding cover, it must be backdated to the start of the EIP.

If you’re unable to renew your PII by the end of the CP:

• you’ll have to cease practice, and
• your current insurer will be required to provide you with the mandatory six years run-off cover

The run-off cover will be deemed to have commenced from the start of the EIP.

You’ll be expected to pay for this cover, the price of which is typically two-and-a-half to three times your last premium.